Page 68 - DCOM101_FINANCIAL_ACCOUNTING_I

Financial Accounting-I

Notes 7. Explain the process of journalising the transactions with suitable examples.

8. What are compound entries? Explain with suitable examples.
9. The following are the transactions of Kumar Swami for the month of January. Journalise
these transactions.
2006
January l Capital paid into Bank 3,00,000
” 1 Bought Stationery for cash 400
” 2 Bought Goods for cash 25,000
” 3 Bought Postage Stamps
” 5 Sold Goods for Cash 10,000
” 6 Bought Office Furniture from Mahendra Bros. 40,000

” 11 Sold goods to Jacob 12,000
” 12 Received cheque from Jacob 12,000
” 14 Paid Mahendra Bros. by cheque 40,000
” 16 Sold goods to Ramesh & Co 5,000
” 20 Bought from S. Seth & Bros 15,000
” 23 Bought Goods for cash from S.Narain & Co 22,000
” 24 Sold Good to P.Prakash 17,000
” 26 Ramesh & Co. Paid on account 2,500
” 28 Paid S.Seth & Bros. by cheque in full settlement 14,800
” 31 Paid Salaries 2,800
” 31 Rent is due to S. Sharma but not yet paid 2,000

Answers: Self Assessment

1. the journal
2. original book of entries/Primary Book of entries
3. entires 4. narration

5. ‘To’ 6. primary book
7. book of original entry 8. posting
9. True 10. False

6.10 Further Readings

Books Khan and Jain, “Management Accounting”.
M.P. Pandikumar, “Accounting & Finance for Managers”, Excel Books, New Delhi.
R. L. Gupta and Radhaswamy, “Advanced Accountancy”.
S. N. Maheswari, “Management Accounting”.

V. K. Goyal, “Financial Accounting”, Excel Books, New Delhi.

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